Case analysis: Firestone

Résumé du document

Bridgestone/Firestone Inc. is an international manufacturer with 38 production facilities around the world. The company is based in Nashville, Tennessee and was formed in 1990, when Bridgestone USA merged with the Firestone Tire & Rubber Company. Tires are the largest part of Bridgestone/Firestone's business, accounting for approximately 75 percent of annual revenues. Bridgestone/Firestone now, has nearly 45,000 employees who produce and sell 50 million tires a year. The company develops, manufactures, and markets tires for almost every kind of vehicle, 8000 different types and sizes in all, including a 13-foot-tall giant radial for earthmoving equipment to a cart tire that is only 10 inches tall. In addition to tires, Bridgestone/Firestone also produces a variety of other products such as air springs, building materials, synthetic and natural rubber, and industrial fibers and textiles. The company also operates Firestone Tire & Service Centers, Mark Morris, Expert Tire and Tire Station retail outlets for automotive tires and services. They also service the commercial trucking industry with their Truck Tire Centers.

Extraits

[...] SWOT Analysis Internal analysis Strengths Firestone will rely heavily on its strengths to weather the recall. The strengths are as follows: 1. Bridgestone name and support: Firestone fortunately has a second flag brand called Bridgestone. While the current market share for Bridgestone is relatively low, Firestone possesses favorable distribution channels to increase the Bridgestone market. Additionally, Firestone can use the support and expertise of their Bridgestone counterparts in Japan to expedite sales of the Bridgestone brand Firestone has a good mix of flag, house, and private brands. [...]

[...] In 1903 the tread life of a passenger tire was only 500 miles. In 1973 it had increased to 24,000 miles, and in just the last 25 years the tread life has almost doubled to about 43,800 miles. Run Flat Technology: This innovation allows a tire to function normally for 50 miles at 50 MPH after a puncture has occurred. This can help automakers reduce the overall vehicle weight and increase luggage space because the need for carrying a spare tire is eliminated. [...]

[...] Finally, Firestone must be an industry leader in meeting and exceeding government regulations and standards. Firestone's brand image will not be able to recover overnight from the damage the recall has done. In fact, in some cases consumers can be very unforgiving. However, through time and some smart marketing techniques, Firestone just may be able to weather the storm. Indicative bibliography Firestone: A Legend, a Century, and a Celebration 1900-2000 par Paul Dickson, Nelson Eddy, ET William Hickman (Relié - décembre 1999) Light Vehicle Tires par Neil Mullineux et N. [...]

[...] Firestone Brands Firestone has a flag brand, house brand and a private label. The flag brand is the name that everyone is familiar with, such as Firestone, Michelin and Goodyear. The house brand is the same tire, but branded with a lesser-known name on the sidewall. This tire is generally less expensive because the manufacturer does not advertise this brand as aggressively as they do the flag brand. The manufacturer has control over the distribution of this line. A private label brand is produced for another distributor. [...]

[...] market segmentation/targeting PHOENIX, Ariz. (Feb 2004) "The quality you demand, the value you deserve" - Shu Ishibashi, Executive Vice President of Bridgestone/Firestone The largest segments in the tire industry are Passenger tires and Light Truck tires. Passenger tires are designed to fit on all cars, many of smaller SUV's (small utilitarian vehicles), and many trucks. Light Truck tires are also on SUV's and full size trucks. The light truck tires are a little bigger and more durable, with heavier plies. [...]